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India is reportedly reassessing its stance on crypto, signaling a potential shift in policy as international attitudes toward digital assets become more favorable, according to a Reuters report. This review aligns with recent developments, especially in the United States, where pro-crypto policies have gained momentum, which has bolstered expectations for expanded adoption of financial products linked to digital assets. Ajay Seth, India’s Economic Affairs Secretary, acknowledged that several jurisdictions had adjusted their stance on crypto, prompting the Asian country’s government to revisit its regulatory approach. This move suggests a willingness to explore more adaptive policies that could allow the sector to thrive. Industry leaders view this policy reassessment as a step toward progress. CoinDCX co-founder Sumit Gupta emphasized that India leads in grassroots crypto adoption. He pointed to projections that suggest Web3 could contribute over $1.1 trillion to India’s GDP by 2032. Gupta added: “To truly lead this digital revolution, regulating the sector, friendlier policies, and releasing a discussion paper on priority is the need of the hour! A clear, forward-thinking approach can position India at the forefront of the Web3 innovation.” Tougher crypto tax rules Even as the government reconsiders its broader crypto stance, India’s Budget 2025 introduces stricter tax measures on digital assets. According to the budget details, cryptocurrencies are now classified as virtual digital assets and subjected to higher tax rates if they aren’t disclosed as income. Effective February 2025, the revised tax policy imposes a 70% penalty on undeclared crypto gains and retroactively applies them to the past four years. By April 2026, businesses involved in crypto transactions must report all dealings to tax authorities to increase the compliance requirements across the sector. Companies will have 30 days to correct any discrepancies. The new regulations demand detailed disclosure of transaction participants, asset types, and trade values.…

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Filed under: News - @ February 3, 2025 12:25 pm